Safeway Owner, Rival Grocers Bet on Smaller Warehouses

Food retailers are making big bets on small warehouses to bulk up their growing delivery businesses, as supermarkets try different approaches to get groceries to customers more efficiently. Albertsons Cos., Walmart Inc.  and other chains are building small fulfillment centers near existing stores and customers to quickly fill orders placed online. More grocers are choosing this strategy over the larger, remote distribution centers that KrogerCo. and Koninklijke Ahold Delhaize ADRNY NV’s Peapod division are building to make deliveries over wider areas.